Harvey Cruz, 46, of Plainfield, Ill., and James Lurito, 63, of Algonguin, Ill., are each charged with one count of Felony Theft in excess of $500,000, according to Cook County State’s Attorney Anita Alvarez. Cruz is also facing an additional charge of Organizing a Continuing Financial Crimes Enterprise, a Class X Felony. All of the charges are non-probationable.

Bond has been set at $ 1 million for the two men.

According to prosecutors, Cruz had worked for the Million Dollar Round Table (MRDT)—an insurance industry association made up of more than 30,000 insurance producers worldwide—for nine years before advancing to become the association’s IT Manager. In 2003, prosecutors allege that Cruz devised an embezzlement scheme and recruited Lurito, who operated an independent IT consulting firm, to participate.

To facilitate the scheme, prosecutors allege that Lurito would submit phony bills for IT work, which would be personally approved by Cruz. Per their arrangement, Lurito would then transfer 90% of the funds to Cruz or a company he controlled and keep the remainder for himself. Prosecutors allege that the thefts occurred between 2003 and 2009, and totaled more than $1.1 million.

INN obtained names of alleged attorneys for Cruz and Lurito. However, they could not be reached for comment. The next court date is Jan. 3.

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Corrected December 7, 2010 at 12:14PM: yes